Research On Relationship Between Environmental Performance And Economical Performance

With the development of our society, more and more people have realized the cost we spent on our economical development and realize the significance of environmental protection and ecological balance. The government of each country has attached importance to the investment of environmental protection and protection of our living environment China, a manufacture-oriented country, has regarded profit as its main goal for a very long time. However, it didn’t pay attention to the negative influence on ecology and public in the process of its pursuit of ecological aim. Since1990, with the increasingly serious problems appeared in environmental pollution, shortage of resource and great gaps between the rich and the poor, our government was determined to change its economical growth pattern and called for environmental protection and the development of new economy. Meanwhile, our government also put forward that the enterprises, as the mainstay of our social development, should take appropriate responsibilities and make a balance between environmental protection and economical performance, only in this way can they create a grow exterior as well as interior environment for the permanent development of themselves and sustainable development of our society.Under this circumstance, the current paper combines empirical normative study and does a deep analysis of the relationship between environmental performance and economical performance of the launched forms strictly controlled by various stakeholders. Based on social responsibility theory, stakeholder theory, sustainable development theory and environmental information theory, the current paper put forward its hypothesis by taking the condition of our own country into consideration. The paper focuses on the relationship between environmental performance and economical performance by employing the simultaneous equations system.Before the research into the relevance between environmental performance and economical performance, the paper did a deep research into the appropriateness of the two variables. The result showed that the two variables have a significant appropriateness. Then3SLS is employed to empirically research (into the short-term and long-term) a sample group,367listed Manufacturing industry listing Corporations. The results showed that the enterprises’environmental performance has a bad influence on its economical performance while the economical performance can, to some extent, promote the environmental performance in the short-time. In a word, the degree of environmental risk, privileges, subsidies, asset depreciation and enterprise scale are significant factors influencing environmental performance. The emphasis of enterprises giving to environmental problems has on significant influence on environmental performance. Marginal profit, asset depreciation period and debt-to asset ratio have the significant influence on the development of enterprise. In the book value method, the degree of emphasis given by enterprises has no significant impact on economic performance, while in the market value method; it has a significant impact on economic performance. In a long run, the environmental performance of enterprise has a positive influence on its economical performance and vice versa. The degree of environmental risk, privileges and subsidies, asset depreciation period, enterprise scale, the emphasis of enterprise giving to environmental problems as well as the scale of enterprise have a significant effect on environmental performance. Marginal profit, asset depreciation period, balance sheet ratios and the degree of emphasis giving by enterprises to environmental problems have the same result as that of short-term period.Finally, the current paper takes the current condition of environmental performance of launched manufacturing enterprises and their existing problems into consideration and makes important on the crucial factors influencing environmental performance with the purpose of putting forward some effective measures and suggestion to improve the environmental performance and thus achieve the win-win situation of environmental performance and economical performance.